U.S. stock index futures pointed to a positive open on Wednesday, with equities poised to extend gains after a choppy session the day before. The upbeat tone was fueled by better-than-expected quarterly results from major financial institutions.
A strong earnings response from Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) was expected to provide early momentum to Wall Street.
Shares of Bank of America climbed 4.1% in premarket trading after the lender delivered third-quarter results that topped analyst forecasts on both revenue and earnings. Morgan Stanley also gained 3.9% premarket after its own earnings beat expectations.
U.S.-listed shares of ASML Holding (NASDAQ:ASML) were trading sharply higher ahead of the opening bell. The Dutch semiconductor equipment manufacturer posted mixed third-quarter results but said it expects “2026 total net sales to exceed 2025.”
In contrast, Abbott Laboratories (NYSE:ABT) shares could face pressure after reporting weaker-than-expected third-quarter revenues.
Traders are also watching for any statements from Donald Trump on U.S.-China trade relations, a key market driver in recent days.
Tuesday’s session was marked by heavy volatility. After a steep early selloff, stocks staged a partial rebound before retreating again in the afternoon.
The Dow Jones Industrial Average finished up 202.88 points, or 0.4%, at 46,270.46, recovering from a drop of more than 600 points earlier in the day. The S&P 500 slipped 0.2% to 6,644.31, while the Nasdaq Composite lost 0.8% to 22,521.70.
The late-day pullback followed a post on Truth Social in which Trump accused China of an “economically hostile act” for reducing soybean purchases and threatened to cut trade ties involving cooking oil and other goods.
Earlier in the day, markets had come under pressure amid renewed trade concerns. A spokesperson for Ministry of Commerce of the People’s Republic of China defended Beijing’s export controls on rare earths, saying, “The U.S. has long overstated national security, abused export controls, and adopted discriminatory practices against China.”
They added, “In particular, since the Madrid trade talks between China and the U.S., the U.S. has continued to impose a series of new restrictive measures on China, which have seriously harmed China’s interests and seriously undermined the atmosphere of the bilateral trade talks.”
The spokesperson reiterated that China is ready to “fight to the end” in a trade war but stressed that “the door is open” to negotiations.
Beijing also announced sanctions against five U.S.-based subsidiaries of Hanwha Ocean, accusing the shipping company of aiding Washington’s restrictions on China’s maritime sector.
Financial earnings helped offset some of the early selling pressure. Wells Fargo (NYSE:WFC) jumped 7.2% after posting stronger-than-expected results and raising its profitability outlook. Citigroup (NYSE:C) also gained 3.9% after an earnings beat, though JPMorgan Chase (NYSE:JPM) declined despite solid results.
Airline stocks were among the session’s strongest performers, with the NYSE Arca Airline Index soaring 4.2%. Housing names also rallied, as the Philadelphia Housing Sector Index climbed 2.5%. Banking, networking and telecom shares posted solid gains, while semiconductor and computer hardware stocks weakened again late in the day.
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